Global Heavy Chemicals shuts factory for gas crisis
Highlights
- Its share price rose 111% within a month
- The firm makes revenue of Tk49.59 crore in nine months
- Its net loss stands at Tk30.05 crore
- It share price closes at Tk22.40 on DSE on Tuesday
Global Heavy Chemicals, a manufacturer of industrial chemicals, has announced the temporary suspension of its factory operations at Hasnabad in Dhaka's Keraniganj, starting on Tuesday (15 October) due to a severe gas shortage in the region, according to a stock exchange disclosure.
Khondoker Ahadduzzaman, company secretary, told TBS that they are unable to operate the factory during the daytime due to the gas crisis. "Although operations are possible at night, gas pressure remains low during a significant portion of the night, making it difficult to continue production."
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He expressed hope that factory operations would resume soon.
The company has been facing challenges for several years, leading to a decline in profits. The gas crisis has prevented the company from meeting customer demand, causing many customers to switch to other firms, resulting in lost business.
Despite the crisis, the company's share price surged by 111% within a month without any substantial material information. On 26 May, the share price was Tk22.60, which rose to Tk47.80 by 11 July. Since then, the price has gradually declined, closing at Tk22.40 on Tuesday, below the 26 May level.
Global Heavy Chemicals, incorporated in 2000 and listed on the stock exchanges in 2013, began its journey in the chlor-alkali industry, which was the primary source of chlorine in Bangladesh in the 20th century. The company produces import substitutes for industrial chemicals such as caustic soda, hydrochloric acid, bleaching powder, chlorine, sodium hypochlorite, and chlorinated paraffin wax. It also exports chlorine to India.
In addition to industrial chemicals, the company produces toiletries, with brands covering products such as formalin, carbide and pesticide removers, disinfectants, dishwashers, and floor and toilet cleaners.
From July to March of fiscal year 2023-24, the company generated Tk49.59 crore in revenue, compared to Tk33.16 crore during the same period the previous year. However, its net loss for the first nine months of the last fiscal year amounted to Tk30.05 crore, a sharp increase from a loss of Tk10.35 crore in the previous year.
During this period, the company reported a loss per share of Tk4.17, while its net asset value per share stood at Tk43.68 as of the end of March 2024.
As of 30 September 2024, the company's sponsors and directors jointly hold 68.60% of the shares, institutions hold 11.67%, and the general public holds 19.73% of the company's shares.
